An interview with Nannette Hechler-Fayd’herbe: Seizing opportunities amid greater volatility
Equity markets are currently showing signs of a recovery. Even so, volatility is likely to increase over the course of the summer. In this interview, Nannette Hechler-Fayd'herbe explains what this means for investors and looks at the opportunities offered by diversification.
Volatility on equity markets
Equity markets are continuing to recover from the consequences of the economic lockdown, with the S&P 500 having gained more than 30% since March alone. For investors, this strong performance provides an opportunity to reduce the equity weighting in their portfolio and take the profits made during this period.
Fact is, there is a risk of greater volatility on markets during the summer months. The consequences of the coronavirus crisis can still be seen. "The number of COVID-19 infections has risen again recently, especially in the US and Latin America," says Nannette Hechler-Fayd'herbe, Regional CIO for International Wealth Management at Credit Suisse. This could delay the reopening of economies and also fuel nervousness among investors. Listen to interview to find out what other factors could cause uncertainty in the markets.
The strategic approach to investing in securities
At the same time, investors should not be overcautious when it comes to the stock market. There are still plenty of opportunities to be found on equity markets. "We continue to believe it is possible to generate positive returns on equity markets," says Nannette Hechler-Fayd'herbe. Strategic portfolio diversification can make a lot of sense. On that basis, investors should now be focusing on attractive areas. In this interview, Nannette Hechler-Fayd'herbe explains which sectors and regions are worth investing in right now, and why the COVID-19 crisis makes our long-term Supertrends even more relevant than before.